GWA International (GWT)

Weakness in the share price of household fittings and fixtures supplier
GWA International
has prompted UBS to upgrade its recommendation to “Neutral" from “Sell". The broker saya it still expects a flat result in fiscal 2010, and left its 12-month target price unchanged at $3.30. Solid growth is not expected until 2011, when the company will start to benefit from improved housing completions and the impact from its acquisition of Brivis Climate Systems. GWA bought Brivis for $50 million in March from Carrier Corp subsidiary Carrier Air Conditioning. Following the acquisition, GWA shares had fallen over 10 per cent by last week, but this week the shares have rallied about 7 per cent. GWA plans to integrate the Brivis business with its Dux water heating to form GWA Heating and Cooling, which is expected to have revenues of more than $200 million a year.